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Covid-19: BW Energy faces well challenge in Gabon

May 4, 2020 (Last Updated May 4th, 2020 15:48)

BW Energy is facing difficulties in hooking up a fifth production well drilled on its Dussafu Marin licence offshore Gabon because of the coronavirus pandemic.

BW Energy is facing difficulties in hooking up a production well offshore Gabon because of the coronavirus pandemic.

Drilling of the DTM-6H well, the fifth on the Dussafu Marin licence, was completed in March. It was scheduled to be connected to the BW Adolo floating production, storage and offloading (FPSO) vessel in June this year.

According to the company, it is now unclear when this may happen. BW Energy also said it has suspended plans for the DTM-7H well and a following exploration well.

BW Energy said Dussafu daily operations continue to perform in line with four wells (DTM-2H, DTM-3H, DTM-4H and DTM-5H) producing to the FPSO BW Adolo at a current rate of approximately 20,000 barrels per day (bpd) of gross oil production.

Total Dussafu production for this year is estimated at 15,000 bpd to 16,500 bpd based on the four producing wells, compared to 11,800 bpd last year.

Meanwhile, operational spending (OPEX) per barrel is expected to decrease to about $16-$18 per barrel, compared to $21 per barrel on average for last year.

BW Energy CEO Carl K. Arnet said: “We have taken decisive action to manage the factors we control by safeguarding people, managing OPEX and deferring investments to ensure our resilience amid the current oil market turmoil.

“Our business model enables us to quickly adapt to changing market conditions, preserve financial solidity and sustain low oil prices. When markets normalise, we can quickly resume development activity and increase production.”

In February 2017, Panoro Energy subsidiary Pan-Petroleum Gabon signed a definitive sale and purchase agreement (SPA) to sell a 25% working interest in Dussafu production sharing contract (Dussafu PSC) to BW Energy Gabon (BWEG) for the Gabon project.

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